Exam 17: Business Analytics

Double-clicking a cell in a PivotTable causes Excel to drill down and display the underlying data in a new worksheet.

SCENARIO 17-2 The treemap below shows the amounts (size)measured in billions of US dollars and percentage changes from prior year (color)of business-to-consumer e-commerce sales last year for North America, Asia Pacific, Western Europe, Central & Eastern Europe, Latin America, and Middle East & Africa. -Referring to Scenario 17-2, which region has the largest amount of business-to-consumer e-commerce sales last year?

In multidimensional scaling, the stress statistic is used to measure the distance between objects.

In nonmetric multidimensional scaling, the distance between objects is ordinal scaled.

SCENARIO 17-4 The regression tree below was obtained for predicting the weekend box office revenue of a newly released movie (in thousands of dollars)based on data collected in different cities on the expenditure (at $25, $30, $35, $40, $45, $50, $55, $60, $65 or $70 thousand)spent on TV advertising and the number of times (10, 15, 20, 25, 30 or 35)a day the advertisement appear on TV. -Referring to Scenario 17-4, the highest mean weekend box office revenue is predicted to occur with at least $45 thousand spent on TV advertisement and at least 25 advertisement appearances a day.

Neural networks require only training data but not validating data.

SCENARIO 17-4 The regression tree below was obtained for predicting the weekend box office revenue of a newly released movie (in thousands of dollars)based on data collected in different cities on the expenditure (at $25, $30, $35, $40, $45, $50, $55, $60, $65 or $70 thousand)spent on TV advertising and the number of times (10, 15, 20, 25, 30 or 35)a day the advertisement appear on TV. -Referring to Scenario 17-4, the highest mean weekend box office revenue is predicted to occur with at least $45 thousand spent on TV advertisement and fewer than 25 advertisement appearances a day.

Some business analytics are performed by adding variables to see if unforeseen relationships are uncovered.

SCENARIO 17-3 The tree diagram below shows the results of the classification tree model that has been constructed to predict the probability of a cable company's customers who will switch ("Yes" or "No")into its bundled program offering based on the price ($30, $40, $50, $60)and whether the customer spends more than 5 hours a day watching TV ("Yes" or "No")using the data set of 100 customers collected from a survey. -Referring to Scenario 17-3, the highest probability of switching is predicted to occur among customers who do not watch more than 5 hours of TV a day and are offered the bundled price of higher than $50.

Successful implementation of a classification tree requires rules for splitting the data at each node based on a dependent numerical variable.

SCENARIO 17-1 The table below contains the sparklines for the rates of return (in percentage)for three different stocks from 2007 to 2013. -Referring to Scenario 17-1, the sparklines enable you to predict that the rates of return of the stock market in 2014 will be about the same as in 2013.

SCENARIO 17-3 The tree diagram below shows the results of the classification tree model that has been constructed to predict the probability of a cable company's customers who will switch ("Yes" or "No")into its bundled program offering based on the price ($30, $40, $50, $60)and whether the customer spends more than 5 hours a day watching TV ("Yes" or "No")using the data set of 100 customers collected from a survey. -Referring to Scenario 17-3, the first split occurs at what price?

Successful implementation of a regression tree requires a method to provide prediction for the target variable at each of the nodes.

SCENARIO 17-3 The tree diagram below shows the results of the classification tree model that has been constructed to predict the probability of a cable company's customers who will switch ("Yes" or "No")into its bundled program offering based on the price ($30, $40, $50, $60)and whether the customer spends more than 5 hours a day watching TV ("Yes" or "No")using the data set of 100 customers collected from a survey. -Referring to Scenario 17-3, the highest probability of switching is predicted to occur among customers who watch more than 5 hours of TV a day and are offered the bundled price of lower than $50.

Successful use of a regression tree requires a precise description of the parameters of the tree.

Which of the following disciplines is typically NOT involved in business analytics?

In metric multidimensional scaling, the distance between objects is ratio scaled.

SCENARIO 17-4 The regression tree below was obtained for predicting the weekend box office revenue of a newly released movie (in thousands of dollars)based on data collected in different cities on the expenditure (at $25, $30, $35, $40, $45, $50, $55, $60, $65 or $70 thousand)spent on TV advertising and the number of times (10, 15, 20, 25, 30 or 35)a day the advertisement appear on TV. -Referring to Scenario 17-4, what percentage of the variation in weekend box office revenue can be explained by the amount spent on TV advertising and the number of times a day the advertisement appears on TV?

Which of the following is NOT among the predictive analytics methods covered in the book?

Neural networks can suffer from poor quality of data, insufficient data, or overfitted models.